Indians are pursuing luxury travel more than ever. What is the reason behind this change?

Luxury, business class and extravagant leisure destinations are becoming increasingly popular among Indian travellers. Indians, once known for their resourcefulness and practical approach towards travel, today prioritize travel like never before, and they are doing it in style – with a taste of luxury.

“I am ready to spend some extra money, but when I travel, it should be comfortable,” says Muskaan Agarwal, a 25-year-old student from Delhi NCR. Brownie tells Can I Get Luxury with That Extra Money ” , sharing why she loves to travel in luxury.

Such is the mentality not only of Muskaan but also of many Indians, who are moving away from being budget travelers and adopting the idea of ​​luxury travel.

What does the data tell us?

Luxury travel is no longer a rare phenomenon among Indian tourists. In fact, recent data shows how Indians are adapting their travel plans. India Today Several year-end reports by different travel agencies were analyzed, and all indicate the same thing.

According to data from SkyScanner, an online travel agency, 37 percent of Indian travelers are planning to upgrade their flights to business or first class in 2024. Additionally, 44 percent intend to purchase access to airport lounges to ensure their trips start off on a high note. Comment.

Data from another MakeMyTrip (an online travel agency) also shows the same. In fact, it represents a 50 per cent year-on-year growth in business class bookings, with international flights seeing a massive 80 per cent growth, while domestic flights saw a 27 per cent growth.

It also shows that India’s contribution to domestic hotel bookings priced above Rs 10,000 has increased to 22 per cent compared to 20 per cent in the same period last year. This number is almost double for international hotel bookings (an increase from 51 percent to 57 percent).

These figures paint a compelling picture. For a demographic once known for cost-cutting and resourcefulness, this surge in premium travel options marks a significant shift. It’s no longer just about getting from point A to point B; It’s all about doing so with style, comfort and a little indulgence.

Experts also agree

“Luxury travel has seen extraordinary growth among Indian travelers and this trend shows no signs of slowing down in 2025,” says Louis D’Souza, Director, Tamarind Global. D’Souza explains that today’s Indian traveler wants unique, distinctive experiences beyond traditional sightseeing.

He added, “From relaxing in a private villa on an exclusive island, to gastronomic adventures at Michelin-starred restaurants in Tokyo, or indulging in exclusive art and fashion tours in Paris, the essence of luxury shifts towards experiential and meaningful travel.” Is increasing.”

Prabhakar Kamat, Business Head, Red Dot Representation, agrees with this sentiment and says that this trend looks to grow even more strongly next year.

“India is fast emerging as a powerhouse in the global luxury travel market and this trend will only strengthen over the next year,” he says.

Kamat attributes this growth to changing preferences among Indian tourists, who are now focusing on exclusivity and luxury. He further added, “Contemporary Indian travelers are looking for experiences that are personal and enlightening.”

Both experts identify several key factors behind this shift, including increasing economic prosperity, increased exposure to global lifestyles, and the influence of social media. Let us analyze these reasons one by one.

Why do Indians love luxury?

Several factors have converged to fuel the growth in luxury travel among Indians, transforming it from a niche market to a mainstream aspiration. Take a closer look at what’s behind this change:

• Increasing disposable income: Experts suggest that economic growth in India has created a more affluent middle and upper class, enabling a larger segment of the population to afford premium travel experiences.
• change in priorities: Experts like D’Souza suggest that the younger generation has given priority to travel considering it an essential part of their life. (No 70 hour work week“The trend towards premiumisation is increasingly evident, as travelers are willing to spend more for a memorable holiday,” says Rajesh Mago, co-founder and group CEO, MMT.
• Introduction to Global Lifestyle: Thanks to the rise of social media and digital platforms, Indian travelers have got a front-row seat to the luxury experiences enjoyed by people around the world. This performance has created a taste for indulgence and exclusivity.

• festival tourism: Destination weddings, important anniversaries, and large family reunions are on the rise. Grand occasions now require equally grand venues, and luxury travel provides the perfect setting for such celebrations.
• Post-pandemic priorities: Privacy, security and distinctive experiences have become important considerations for travelers. Exclusive itineraries and private accommodations naturally suit these needs, making luxury travel a more attractive option. Additionally, since the pandemic, there has been a change in the mindset of many people, they are prioritizing experiences more than anything else. This has given rise to a very specific type of yatra known as ‘Badla Yatra’.
• Desire for unique experiences: As D’Souza points out, modern travelers are looking for experiences that go beyond sightseeing. Private villas, Michelin-starred dining and intensive art and fashion tourism have become the new definition of luxury.

Looking ahead, the future of luxury travel for Indians looks brighter than ever. As Kamat says, “The growing appetite for such experiences is a clear indication that luxury travel will only continue to flourish in the years to come, and Indians will play a key role in shaping its future.”

Gone are the days when Indians were seen as “budget travellers”. Today, they are shaping the global luxury travel landscape with their evolving tastes and growing influence. With the hectic lifestyle, holidays are becoming a luxury for Indians. And from the looks of it, this change has just begun.